The amount of funding raised by Israeli start-ups reached the level of $93o million for 175 companies in Q2/14, the largest figure since the 2000 dot.com craze. This is an astounding 109% above the $446 million raised in Q2/13 and 38% more than the $673 million in Q1/14. The average amount per company was $5.3 million in Q2 compared to $4.2 million in Q1.
Companies are garnering more seed money and are given the means to fly solo as IPOs rather than waiting for a takeover bid. One of the biggest beneficiaries of the trend was Landa Publishing, which received funding to the tune of $135 million by Germany’s Atlanta Company.
Ofer Chaikin of KPMG’s Somekh Chaikin Technologies commented: “Mature, revenue growth companies are continuing to raise significant capital, while in the past, while in the past, venture revenue funds saw M&A routes as providing the best opportunity for revenue growth …. potential Nasdaq IPOs are now a major driver of VC Investment.”